United munity Banks(US:UCBI)2025-11-07 18:42Financial Performance - Net income for the three months ended September 30, 2025, was $91,494 thousand, representing a significant increase of 93.5% compared to $47,347 thousand in the prior year[14]. - Net income for the nine months ended September 30, 2025, was $241,640,000, an increase from $176,593,000 in the same period of 2024, representing a growth of approximately 36.8%[19]. - The company reported a basic net income per common share of $0.71 for the three months ended September 30, 2025, compared to $0.38 in the prior year, marking an increase of 86.8%[14]. - For Q3 2025, net income was $91.5 million, with diluted earnings per share of $0.70, compared to $47.3 million and $0.38 in Q3 2024, representing an increase of 93% in net income[151]. - For the nine months ended September 30, 2025, net income was $242 million, up from $177 million in the same period of 2024, with diluted earnings per share increasing from $1.43 to $1.91[151]. Revenue and Income Sources - Net interest revenue for the three months ended September 30, 2025, was $233,629 thousand, up 11.7% from $209,186 thousand in the same period of 2024[14]. - Noninterest income for the nine months ended September 30, 2025, totaled $113,583 thousand, a 34.9% increase from $84,234 thousand in the same period of 2024[14]. - Noninterest income for Q3 2025 was $43.2 million, an increase of $35.1 million compared to the same period in 2024, largely due to favorable fair value adjustments[156]. - Total revenue rose by 27% year-over-year to $276,848 thousand in Q3 2025, up from $217,277 thousand in Q3 2024[161]. - Noninterest income surged by 435% year-over-year to $43,219 thousand in Q3 2025, compared to $8,091 thousand in Q3 2024[161]. Assets and Liabilities - Total assets increased to $28,143,473 thousand as of September 30, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 1.5%[12]. - Total liabilities increased to $24,546,622 thousand as of September 30, 2025, from $24,288,131 thousand at December 31, 2024, reflecting a growth of 1.1%[12]. - The company’s retained earnings rose to $858,395 thousand as of September 30, 2025, compared to $714,138 thousand at December 31, 2024, an increase of 20.2%[12]. - The carrying value of loans held for investment as of September 30, 2025, was $18,399,997,000, an increase from $17,325,630,000 on December 31, 2024[131]. - As of September 30, 2025, total investment securities decreased to $6.16 billion from $6.80 billion, a decline of $641 million[199]. Credit Quality and Losses - The provision for credit losses decreased to $7,907 thousand for the three months ended September 30, 2025, down from $14,428 thousand in the same period of 2024, indicating improved credit quality[14]. - The company reported a provision for credit losses of $35,144,000 for the nine months ended September 30, 2025, down from $39,562,000 in 2024, indicating a decrease of 11.4%[19]. - The total Allowance for Credit Losses (ACL) for loans was $215,791,000, reflecting a decrease of $12,854,000 from the previous period[88]. - The net charge-offs for the three months ended September 30, 2025, totaled $7.68 million, compared to $23.65 million for the same period in 2024[193]. - Nonperforming Assets (NPAs) decreased to $97.92 million as of September 30, 2025, from $115.64 million at December 31, 2024, with nonaccrual loans as a percentage of total loans at 0.50%[196]. Acquisition and Market Presence - The company completed the acquisition of ANB on May 1, 2025, which is expected to enhance its market presence in Oakland Park, Florida[26]. - The acquisition of ANB resulted in actual revenue of $4.365 million and net income of $2.208 million for the three months ended September 30, 2025, with pro forma revenue of $275.888 million and net income of $93.064 million if the acquisition had occurred on January 1, 2024[32]. - The company reported net cash provided by operating activities of $318,563,000 for the nine months ended September 30, 2025, compared to $201,642,000 for the same period in 2024, indicating a significant increase of 57.9%[19]. Capital and Shareholder Returns - As of September 30, 2025, the CET1 capital ratio was 13.44%, well above the minimum requirement of 4.5%[138]. - Total capital as of September 30, 2025, was $3,073,175,000, compared to $2,982,273,000 on December 31, 2024, showing an increase of 3%[138]. - The company redeemed all outstanding shares of its 6.875% Series I non-cumulative perpetual preferred stock on September 15, 2025, for a cash payment of $91.5 million[140]. - Cash dividends declared rose to $0.25 per share in Q3 2025, up from $0.24 per share in Q3 2024[161]. Market and Economic Conditions - The corporate tax rate was made permanent at 21% with the enactment of the One Big Beautiful Bill Act on July 4, 2025, impacting future financial planning[149]. - The federal funds rate cuts of 125 basis points beginning in September 2024 contributed to the improvement in net interest spread and margin[164]. - The baseline economic forecast has worsened slightly, impacting the expected default rates, but the decrease in net charge-offs contributed to a lower modeled ACL balance[84].